DATE
Getting by between jobs
Quickly cutting expenses and following a spending plan are essential
Contact Peggy Olive, 608-647-6148, peggy.olive@ces.uwex.edu [YOUR NAME
and CONTACT INFORMATION]
Richland Center, Wis.[YOUR TOWN]--Losing your job or facing a drastic drop in
income is one of the most stressful events a person can experience.
Unemployment can mean sudden lifestyle changes for the entire family. Because
there is less money to spend, you must decide how to spend what you have.
Even though the paychecks stop coming, the bills don’t. When you don’t have
enough to cover your monthly expenses and pay creditors, you face hard
financial decisions.
Concern about how to pay bills and meet day-to-day expenses can become
overwhelming. You may be tempted to use credit cards, take out a home equity
loan or borrow money, but taking on more debt is generally not a good idea.
Unless your situation turns around quickly, more debt only creates bigger
problems, says Peggy Olive, University of Wisconsin-Extension family living
agent for Richland County [YOUR NAME].
“Instead, focus on cutting your spending and working with creditors to reduce or
defer your payments until your situation improves,” Olive [YOUR NAME] advises.
“Act quickly to cut expenses and make a spending plan so you can pay bills
when they are due.”
“Taking charge of your financial situation is a positive contribution to your family’s
wellbeing,” says Olive.
Studies have found that many families do not adjust their lifestyles to cut
spending until about six months after their income drops. Those six months can
bring financial disaster.
Olive [YOUR NAME]offers some tips:
--Talk with your family about the situation so that everyone understands and
supports the decisions being made.
--Review your income and expenses and balance them as much as possible.
--Try not to use credit while you are unemployed.
--You are legally obligated to pay all your bills, so if you think you may have
difficulty making payments, talk to creditors right away. Have these conversations
before you fall behind.
--If one partner is employed, explore whether overtime or a change in payroll
deductions could bring extra money into the household.
--A drop in income can make a household eligible for tax credits or financial
assistance programs. Check out http://www.access.wisconsin.gov for eligibility
information
To help people find ways to make ends meet in difficult times, UW-Extension
Family Living Programs has developed resources for managing personal
finances that are available for free on a new website at
http://fyi.uwex.edu/toughtimes
Visit the site to learn about “Dealing with a Drop in Income” and “Cutting Back
and Keeping Up” in difficult economic times, to gain access to many other
resources.
For more information about handling family finances, contact your local UWExtension office.
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